Capitol Riverfront office building sells for $57m
By: Liz Farmer, Washington Examiner
October 27, 2010
After nearly a year in limbo, the 243,221-square-foot office building on M Street Southeast, (one block from Nationals Park) has a new owner.
Northwood Investors, a real estate investment management firm in New York, bought the building's ground lease at an auction Thursday for $57 million. The sale is part of the bankruptcy proceedings of developer Opus East, which racked up nearly $60 million in construction debt associated with the development. Bank of America is the primary creditor.
Before it filed for bankruptcy in July 2009, Opus's deal to sell 100 M Street to MayfieldGentry Realty Advisors fell through, adding to the company's woes.
Ted Skirbunt, director of research and information systems for the Capitol Riverfront BID, said Friday the auction will allow leasing on the building to finally go forward. The building has been under half leased for the better part of its two-year history.
"We've heard there's been significant leasing interest in that building, Skirbunt said. "But it's pretty much impossible to sign a lease when a property is going through the foreclosure process."